Oil Futures Builds on Early Rebound in Asian Trade
By Biman Mukherji
--Oil futures recovered in Asian trade Friday, after an overnight pullback that ignored a larger-than-expected fall in U.S. oil inventories.
--November Nymex light, sweet crude oil on the New York Mercantile exchange was recently up 0.7% at $50.95 a barrel in the Globex trading session. December Brent rose 0.6% to $56.59.
--The U.S. Energy Information Administration Thursday showed that domestic crude supplies fell by 2.8 million barrels for the week ended Oct. 6, far above the forecast for a decline of 400,000 barrels by S&P Global Platts. Analysts in a Wall Street Journal survey had projected a 1.7 million-barrel decline.
--Investors appear to be stuck in a holding pattern as they appear unconvinced of any tightening yet in the oversupplied global markets, despite the Organization of the Petroleum Exporting Countries saying a rebalancing has accelerated. Unless there is a big drop in U.S. oil-rig data later Friday, large price swings are unlikely, analysts say.
Write to Biman Mukherji at [email protected]